State revenue declines

Posted: Friday, May 11, 2001

By Associated Press

ATLANTA -- State revenue collections declined 8.5 percent last month compared with April 2000, falling from about $1.123 billion to about $1.03 billion.

Revenue from corporate income fell 21.1 percent. Money from individual income taxes dropped 14 percent, while revenue from sales and use taxes on clothing, furniture and other such items dropped 4.4 percent.

''It's the first real drop we've had in a long time,'' said Jeff Humphreys, director of economic forecasting at the University of Georgia. ''We've had so many strong, positive reports in the state revenue that this one was just kind of a surprise.

''Individuals aren't spending as much, and profits for companies are down as well,'' Humphreys said.

But he said the drop in state revenue may be a one-month blip, and Georgia's still adding jobs, even if in much smaller numbers than recent years.

The number of first-time unemployment claims jumped 103 percent statewide in April, the fourth straight month of increases. Some 46,686 Georgians filed first-time claims, up from 22,956 in April of last year.

Roger Tutterow, director of the Econometric Center at Kennesaw State University, said the decrease in state revenue is ''due to the slowing economy.''

''The more modest income gains, coupled with the rising cost in energy, would take a bite out of people's wallets,'' Tutterow said.